Supermarket Income REIT PLC (LSE:SUPR) is still on the buy list with broker Berenberg, which says the trust is going from strength to strength as it raised its forecast of net tangible assets by 6.5%.
Last month, the REIT announced that Sainsburys will be repurchasing eight stores that were held in a joint venture (JV) with the British Airways Pension Fund, taking the total amount to be repurchased to 21 stores and freeing up roughly £148mln of capital.
The broker notes that since its full-year results, the REIT has continued to increase the number of stores it owns.
It has acquired £372mln worth of supermarket sites in the past six months, with Berenberg estimating that a further £228mln worth are currently under review from management, with the potential to increase contracted rent by 15%.
Berenberg’s target price is unchanged at 135p compared to a market price today of 120.3p.